Naver announced on the 7th that its revenue for the second quarter of this year increased by 16.2% year-on-year to 3.3888 trillion won. Operating profit was 520.3 billion won, a slight decrease of 0.2% compared to the same period last year. Net income attributable to owners of the parent company reached 704.3 billion won, up 41.6% from the same period last year.
Revenue grew by double digits as AI integration expanded in core businesses such as advertising and commerce, while the global C2C (consumer-to-consumer) business also saw growth. However, operating profit declined slightly due to massive investments in AI infrastructure.
Revenue by segment: △Naver Platform 1.9022 trillion won △Financial Platform 470.7 billion won △Global Challenge 1.0159 trillion won.
Naver Platform revenue increased by 12.3% year-on-year and 3.4% quarter-on-quarter. Among these, advertising revenue rose by 7.5% compared to the same period last year. AI's contribution to revenue growth through AI-based content optimization and advanced targeting exceeded 60%. Notably, the AI briefing ad, officially launched at the end of July, showed a click-through rate 30% higher and a purchase conversion rate three times higher than existing search ads. Service revenue increased by 31.3% year-on-year.
Financial Platform revenue grew by 16.0% year-on-year and 2.4% quarter-on-quarter. Npay payment volume in the second quarter reached 25.2 trillion won, up 21.0% from the same period last year, driven by Smart Store's growth and expansion of its external ecosystem. Naver demonstrated rapid expansion in the AI platform business for businesses through the offline-online integrated terminal 'Npay Connect'. Naver plans to integrate online and offline data to enhance its ecosystem competitiveness.
The Global Challenge segment increased by 24.4% year-on-year and 7.9% quarter-on-quarter, with the C2C business driving revenue growth. C2C transaction volume and revenue rose by 74.9% year-on-year and 13.3% quarter-on-quarter, respectively, due to strengthened competitiveness in platforms such as Walapop, Poshmark, and Soda. Content revenue increased by 0.5% year-on-year and 5.5% quarter-on-quarter. Enterprise revenue grew by 21.3% year-on-year and 2.2% quarter-on-quarter, driven by B2B (business-to-business) revenue growth related to AI and digital twin technologies.
Revenue from the AI Factory project jointly promoted by Naver and NVIDIA is expected to begin generating income in the first half of next year.
Naver CEO Choi Soo-yeon stated, "We recently formed a strategic partnership with NVIDIA to advance the AI Factory business, establishing a foundation that allows us to rapidly expand while minimizing initial capital burdens." She added, "By leveraging NVIDIA's ecosystem and our company's existing enterprise and public customer base, we aim to secure early demand for initial operational capacity and achieve meaningful revenue and profit results."
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